SEC Filings

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The indenture governing the new notes permits the
issuers and their subsidiaries, Avalon Cable of
Michigan LLC and Avalon Cable of New England LLC,
which are subsidiaries of Avalon Cable LLC, and
Avalon Cable Finance, Inc., which is a subsidiary
of Avalon Cable Holdings Finance, Inc., to incur
additional indebtedness subject to certain
limitations. We refer to these subsidiaries of the
issuers as the operating subsidiaries. As of March
31, 1999, on a pro forma basis:
. the issuers would have had no outstanding
indebtedness other than the existing notes and
the debt of their subsidiaries, and
. the outstanding senior indebtedness of the
issuers' operating subsidiaries on a combined
basis would have been $328.5 million.
Certain Covenants........
The indenture governing the new notes limits the
activities of the issuers and their restricted
subsidiaries. The provisions of the new note
indenture limit their ability to:
. incur additional indebtedness,
. pay dividends or make certain other restricted
payments,
. enter into transactions with affiliates,
. sell assets or subsidiary stock,
. create liens,
. restrict dividends or other payments from
restricted subsidiaries,
. merge, consolidate or sell all or substantially
all of their combined assets, and
. with respect to restricted subsidiaries, issue
capital stock.
Guarantors...............
Avalon Cable of Michigan, Inc., an equity holder in
Avalon Cable LLC, and its sole stockholder, Avalon
Cable of Michigan Holdings, Inc. will guarantee the
obligations of Avalon Cable LLC under the new
notes. However, neither Avalon Cable of Michigan
Holdings, Inc. nor Avalon Cable of Michigan, Inc.
has any significant assets other than its equity
interest in Avalon Cable LLC and Avalon Cable of
Michigan Inc., respectively. Thus, holders should
not expect the guarantors to have any assets
available to make principal and interest payments
on the new notes. For a description of the
relationship of the guarantors to the issuers, see
"The Company--Structure After the Reorganization."
For more information about the new notes, see the "Description of the Notes"
section of this prospectus.
Summary Unaudited Pro Forma Combined Financial and Operating Data
The following table shows for the periods indicated certain financial and
operating data for the issuers, their predecessors and Taconic Technology
Corporation, which is subject to a pending acquisition by the issuers. The
following summary unaudited pro forma combined financial and operating data are
based on the historical financial statements of Avalon Cable of Michigan
Holdings, Inc., Cable Michigan, Inc., the predecessor company to Avalon Cable
of Michigan Holdings, Inc., Avalon Cable LLC, Avalon Cable of New England LLC,
AMRAC Clear View, the predecessor to Avalon Cable LLC and Avalon Cable of New
England LLC, Pegasus Cable Television, Inc. and Pegasus Cable Television of
Connecticut, Inc., Taconic Technology
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